- New Science in old markets -

Cable extends, drops. Yen too – sell both

The £ vs the $ or 'Cable' exchange rate made a top extension a few days ago after running up on relief that the Conservatives had beaten off a resurgent Communist Labour party in the recent elections. The rate has now fallen back but there still seems to be a 'trade' here - sell the £ buy the $:

Cable extends

The dollar is stronger against several currencies at the moment and this trade could probably also be expressed by selling the € and buying the $ - with the added advantage that the ECB is still engaged in QE. Just as good however would be to sell the Yen (by selling Yen futures) as that has just broken down from some compressions. Japan too is printing a lot of money, so this adds appeal to this trade:Yen breaks down